‘I was suicidal’: Loan sharks pose as friends to trap victims in cost of living crisis
Families facing up to the spiralling cost of living are being targeted by predatory loan sharks who pose as friends and even using social media influencers to trap new victims.
It is estimated more than a million people are in debt to illegal money lenders, a number that has trebled in the past decade.
Investigators are concerned that the rising cost of living will push people who would not normally seek an underground loan to do just that.
Tony Quigley, head of England Illegal Money Lending Team, said: “One of the things we’re fearful of obviously is with the current situation around energy prices and inflation is that more people will be tempted to use this type of lender.”
Illegal lenders are increasingly operating on social media to entice and then exploit victims, sending threatening messages and shaming and manipulating them on group chats.
One convicted loan shark used an influencer to attract victims.
Loan sharks are also snaring victims by posing as friends who simply want to help out with cash loans before ramping up extortionate and arbitrary interest rates.
£50 loan that spiralled to thousands
One woman, a mother of three, was offered a £50 loan by a woman she met at the school gate.
The debt quickly spiralled and she ended up paying thousands in cash with no records kept.
“I was stressed over the repayments,” she said. “I knew I had to pay her back because I have seen what she had done to other people if they didn’t pay her back. She made it her business to know exactly what money went into my bank.
“I got to the point of wanting to end everything. I was very suicidal and didn’t know who to go to. There were threats on my life and on my home. I had windows put in and I would get messages off people bullying me because she had sent them to my door, she even used local youths in the area as a campaign of terror.”
A suspected loan shark is arrested
‘Likely an illegal lender is someone you know’
The woman’s experience matches what was found in a study by the Centre for Social Justice, a think tank.
Matthew Greenwood, its head of debt, said: “I think the most startling thing that we uncovered was that over half of people who borrow from an illegal lender said that they perceived this person to be their friend when they first borrowed.
“There’s a sort of perception that every illegal lender is someone in a hoodie in a dark alley and while those people certainly do exist, it’s far more likely that an illegal lender is someone you know, rather than someone you’ve met for the first time.”
The study found that most victims have an income below £20,000, two-thirds already owe money to legal creditors, three-quarters are on benefits and two-thirds have a long-term health condition.
Tony Quigley said his team has seen ‘some horrendous things’
‘Pay me, don’t feed your children’
Experts say the crime is so widespread and hidden that victims are too scared or ashamed to report their experiences. The large sums of money and extortionate rates of interest take a psychological toll, leaving victims feeling trapped and helpless.
“We’ve seen some horrendous things that people have been subjected to,” Mr Quigley said. “We’ve had instances in the past where the loan shark has said to individuals: ‘Pay me, don’t feed your children.’
“We’ve also seen illegal lenders who have said they’ll send men round and they can pay the debt off through sexual favours so it is just hideous.”
The England Illegal Money Lending team, which was set up in 2004 and runs the Stop Loan Sharks helpline, is a specialist team of law enforcement officers combatting illegal lending and associated crime.
It has prosecuted more than 400 cases and written off £90m in illegal debt.
The UK, France and Ukraine will work on a ceasefire plan to present to the United States, the prime minister has said, in the wake of Volodymyr Zelenskyy’s White House clash with Donald Trump.
Sir Keir Starmer, who visited Washington on Thursday, said he believes Mr Trump does want a “lasting peace” between Russia and Ukraine.
He also said Europe is in a “moment of real fragility” and he would not trust the word of Vladimir Putin.
Follow live – UK hoping Ukraine peace plan can get ‘back on track’ at London summit
Referring to the argument in the White House’s Oval Office on Thursday between Mr Trump, US vice president JD Vance and Ukrainian president Mr Zelenskyy, the PM said it made him feel “uncomfortable”.
“Nobody wants to see that,” he told the BBC’s Sunday with Laura Kuenssberg.
He added: “We have to find a way that we can all work together. Because, in the end, we’ve had three years of bloody conflict. Now, we need to get to that lasting peace.”
The prime minister said he was in his office when the White House shouting match began to be broadcast.
“Clearly, you know, there’s a lot of tension,” he said. “The cameras were on.”
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When Starmer met Zelenskyy: What happened?
Later in the evening he phoned both Mr Trump and Mr Zelenskyy, saying his “driving purpose” is to “bridge this and get us back to the central focus”.
On Saturday, the PM said he had “quite a long time with President Zelenskyy” before speaking to Donald Trump and French president Emmanuel Macron on the phone.
“We’ve now agreed that the United Kingdom, along with France and possibly one or two others, will work with Ukraine on a plan to stop the fighting, and then we’ll discuss that plan with the United States,” he said.
Of Mr Trump, he said: “I am clear in my mind that he does want a lasting peace.”
Asked why that was, he said: “Because I’ve spoken to him a number of times. I’ve got to know him. I’ve had extensive discussions with him and I believe his motivation is lasting peace.”
He added: “If the central question you’re putting to me is do I trust Donald Trump when he says he wants lasting peace? The answer to that question is yes.”
The PM said he was still pushing for a US “backstop” on Ukrainian security, adding that it was the subject of “intense” discussion.
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Ukrainians react to Trump row
The “components of a lasting peace”, he said, include a “strong Ukraine to fight on, if necessary, to be in a position of strength”.
And he is pursuing a “European element to security guarantees”.
“That’s why I’ve been forward-leaning on this about what we would do – and a US backstop,” he said.
“That’s the package: all three parts need to be in place, and that’s what I’m working hard to bring together.”
Asked if he would trust Vladimir Putin, Sir Keir said: “Well, no, I wouldn’t trust Putin, which is why I want a security guarantee.
“I wouldn’t trust him not to come again, because he’s proven that he will come again. He’s already done it and we know what his ambitions are.”
Sir Ed Davey, leader of the Liberal Democrats, said his party would support sending British troops to Ukraine as peacekeepers in the event that a “credible” deal is struck.
Conservative leader Kemi Badenoch said European nations need to “make sure that America does not disengage”, adding: “If we all get dragged into an escalation, America will get dragged into it eventually.”
She described Volodymyr Zelenslyy as a “hero” and said her heart “went out to” him during the on-camera argument at the White House.
“I watched it and I couldn’t believe what was happening,” she said. “He was being humiliated.”
Such “difficult conversations” should not happen in front of the cameras, she added.
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Sir Keir Starmer greets Italian prime minister Giorgia Meloni in Downing Street. Pic: Reuters
The UK is holding an international defence summit on Sunday, hosting the leaders of Italy, France, Germany, Denmark, Norway, Poland, Canada, Finland and Romania.
Italian Prime Minister Giorgia Meloni told Sir Keir Starmer it is “very, very important that we avoid the risk that the West divides” as she arrived for talks at Number 10.
EU Commission president Ursula von der Leyen, NATO secretary general Mark Rutte, and Turkey’s foreign minister Hakan Fidan will also attend the summit.
It is hoped the meeting will help to get things “back on track”, a government source has told Sky News.
However, they admitted there will be “more ups and downs” ahead.
“We must keep our eyes on the prize.”
The insider added that the government was “working yesterday to get [Volodymyr] Zelenskyy back to the table” and finish the minerals deal with the US.
That was thrown into question on Friday during the clash at the White House.
The source said: “We think it’s the right thing to do. Today is about getting European leaders to go beyond the Twitter rhetoric and step up on defence spending – prepare now for a world with no US security guarantee for Europe, not just in Ukraine.”
Volodymyr Zelenskyy has said the Ukrainian people “are truly thankful” for US support, hours after talks with Donald Trump descended into a row at the White House.
During a disastrous meeting with Mr Trump, the Ukrainian president was asked by vice president JD Vance, “have you said thank you once?”
In a lengthy social media post, Mr Zelenskyy said: “I always begin with words of gratitude from our nation to the American nation”.
The Ukrainian president insisted the US-Ukraine relationship “is more than just two leaders” but it was “crucial” for his country to have Mr Trump’s support.
He added: “American people helped save our people. Humans and human rights come first. We’re truly thankful. We want only strong relations with America, and I really hope we will have them.”
Ukraine latest: Zelenskyy says Ukraine should be ‘not forgotten’
Mr Zelenskyy will meet Sir Keir Starmer in Downing Street on Saturday afternoon after his plane landed at Stansted Airport.
It comes ahead of a major summit hosted by the UK prime minister on Sunday, where more than a dozen European and EU leaders including Mr Zelenskyy will meet to discuss the Ukraine war and security.
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Zelenskyy’s plane lands in UK
The Ukrainian president had travelled to Washington DC to attempt to secure a ceasefire agreement after three years of war with Russia and a possible mineral deal with the US.
The meeting descended into a shouting match in front of cameras and journalists.
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Watch Trump and Zelenskyy clash
Mr Vance told Mr Zelenskyy: “I think it’s disrespectful for you to come to the Oval Office to try to litigate this in front of the American media.
“You should be thanking the President [Trump] for trying to bring an end to this conflict.”
Mr Zelenskyy and Mr Trump clash. Pics: Reuters
‘You’re gambling with World War Three’
The Ukrainian president tried to object but Mr Trump spoke over him and told him: “You’re gambling with the lives of millions of people.
“You’re gambling with World War Three, and what you’re doing is very disrespectful to the country, this country that’s backed you far more than a lot of people say they should have.”
Mr Zelenskyy defended himself and his country, openly challenging Mr Trump on his softer approach to Vladimir Putin and urging him to make “no compromises with a killer”.
More from Sky News:
How Starmer secured wins at the White House
Inside the Oval Office with Trump and Starmer
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Trump and Zelenskyy’s body language analysed
European leaders express support for Zelenskyy
After the row, Mr Trump told his Ukrainian counterpart to leave the White House, according to a US official, leaving the minerals deal in limbo.
European leaders expressed their support for Mr Zelenskyy ahead of the UK summit on Sunday.
France’s Emmanuel Macron, Germany’s Olaf Scholz, and Poland’s Donald Tusk all shared social media posts expressing their support.
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